adminKUALA LUMPUR, Oct 15 (Bernama) — The Kuala Lumpur rubber market ended mixed for the second consecutive day today, with SMR 20 recording a sharp decline in line with weaker regional rubber futures markets.
A dealer said prices were pressured by profit-taking, weaker Chinese rubber imports, lower crude oil prices and rising US inflation, which raised concerns over possible interest rate hikes.
“The stronger ringgit against the US dollar also weighed on prices,” he told Bernama.
It was reported that lower Chinese imports weakened demand prospects with natural and synthetic rubber imports falling 20.8 per cent year-on-year to 588,000 tonnes in September.
In addition, the US Consumer Price Index rose 0.6 per cent in September and 3.7 per cent year-on-year, raising expectations of further Federal Reserve rate hikes.
However, he said further losses were capped by tight raw material supply, while the expansion of Chinese automakers’ manufacturing facilities and supply chains across Europe could provide additional support to rubber prices.
At 3 pm, the Malaysian Rubber Board’s Standard Malaysian Rubber 20 (SMR 20) price fell 23.5 sen to 1,026.5 sen per kilogramme (kg), while bulk latex increased two sen to 783 sen per kg.
— BERNAMA
